Wall Street Backs Texas Instruments (TXN) Ahead of Q4 Earnings and Capital Management Day

Texas Instruments Incorporated (NASDAQ:TXN) is among Goldman Sachs’ top semiconductor stock picks. On January 27, Evercore ISI reiterated an Outperform rating on Texas Instruments (NASDAQ:TXN) with a $226 price target, citing underweight investor positioning in analog and microcontroller semiconductors ahead of Q4 earnings and potential data center market share gains in 2026.

The firm noted TXN’s underperformance versus the S&P 500 and SOX index over the past six months but pointed to the upcoming Capital Management Day webinar as a catalyst for margin improvements into 2027. While generally positive industry feedback supports recovery prospects, Evercore also flagged valuation concerns and expectations of slower year‑over‑year revenue growth in the first quarter.

On January 16, Stifel raised its price target on Texas Instruments Incorporated to $200 from $170 and maintained a Hold rating. The firm based this adjustment on indications of a cyclical recovery shown in Texas Instruments’ Q3 2025 results.

According to its analysis, Stifel noted that all of Texas Instruments’ end markets experienced growth both sequentially and compared to the previous year. The firm pointed to the company’s data center performance as a key strength. This segment has driven notable revenue increases in enterprise systems, communications equipment, and industrial sectors, Stifel noted.

The analysts also highlighted Texas Instruments’ consistent free cash flow production. Trailing twelve-month free cash flow amounted to $2.27 billion, which represents 19.4% of trailing twelve-month sales.

Texas Instruments Incorporated (NASDAQ:TXN) is a semiconductor company. It designs and manufactures analog chips and embedded processors used in industrial, automotive, personal electronics, and communications equipment.

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Disclosure: None. This article is originally published at Insider Monkey.